IDEAS home Printed from https://ideas.repec.org/a/iza/izawol/journl2020n365.html
   My bibliography  Save this article

Racial wage differentials in developed countries

Author

Listed:
  • Simonetta Longhi

    (University of Reading, UK, and IZA, Germany)

Abstract

In many developed countries, racial and ethnic minorities are paid, on average, less than the native white majority. While racial wage differentials are partly the result of immigration, they also persist for racial minorities of second and further generations. Eliminating racial wage differentials and promoting equal opportunities among citizens with different racial backgrounds is an important social policy goal. Inequalities resulting from differences in opportunities lead to a waste of talent for those who cannot reach their potential and to a waste of resources if some people cannot contribute fully to society.

Suggested Citation

  • Simonetta Longhi, 2020. "Racial wage differentials in developed countries," IZA World of Labor, Institute of Labor Economics (IZA), pages 365-365, October.
    • Handle: RePEc:iza:izawol:journl:2020:n:365
    as

    Download full text from publisher

    File URL: https://wol.iza.org/uploads/articles/365/pdfs/racial-wage-differentials-in-developed-countries.pdf
    Download Restriction: no
    File URL: https://wol.iza.org/articles/racial-wage-differentials-in-developed-countries
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Judith K. Hellerstein & David Neumark, 2008. "Workplace Segregation in the United States: Race, Ethnicity, and Skill," The Review of Economics and Statistics, MIT Press, vol. 90(3), pages 459-477, August.
    2. Dylan Glover & Amanda Pallais & William Pariente, 2017. "Discrimination as a Self-Fulfilling Prophecy: Evidence from French Grocery Stores," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 132(3), pages 1219-1260.
    3. Elder, Todd E. & Goddeeris, John H. & Haider, Steven J., 2010. "Unexplained gaps and Oaxaca-Blinder decompositions," Labour Economics, Elsevier, vol. 17(1), pages 284-290, January.
    4. Gil S. Epstein & Dalit Gafni & Erez Siniver, 2015. "Even education has its limits: closing the wage gap," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 42(5), pages 908-928, October.
    5. Yann Algan & Christian Dustmann & Albrecht Glitz & Alan Manning, 2010. "The Economic Situation of First and Second-Generation Immigrants in France, Germany and the United Kingdom," Economic Journal, Royal Economic Society, vol. 120(542), pages 4-30, February.
    6. Kevin Lang & Jee-Yeon K. Lehmann, 2012. "Racial Discrimination in the Labor Market: Theory and Empirics," Journal of Economic Literature, American Economic Association, vol. 50(4), pages 959-1006, December.
    7. Epstein, Gil S. & Gafni, Dalit & Siniver, Erez, 2014. "Even Education and Experience Has Its Limits: Closing the Wage Gap," IZA Discussion Papers 8737, Institute of Labor Economics (IZA).
    8. Romain Aeberhardt & Denis Fougère & Julien Pouget & Roland Rathelot, 2010. "Wages and employment of French workers with African origin," Journal of Population Economics, Springer;European Society for Population Economics, vol. 23(3), pages 881-905, June.
    9. repec:hal:spmain:info:hdl:2441/536kq4edtr82jqovubq3ttobc5 is not listed on IDEAS
    10. John S. Heywood & Daniel Parent, 2012. "Performance Pay and the White-Black Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 30(2), pages 249-290.
    11. Toomet, Ott & Van Der Leij, Marco & Rolfe, Meredith, 2013. "Social networks and labor market inequality between ethnicities and races," Network Science, Cambridge University Press, vol. 1(3), pages 321-352, December.
    12. O. Ashenfelter & D. Card (ed.), 1999. "Handbook of Labor Economics," Handbook of Labor Economics, Elsevier, edition 1, volume 3, number 3.
    13. Colin P. Green & John S. Heywood & Nikolaos Theodoropoulos, 2014. "Performance pay and ethnic earnings differences in Britain," Oxford Economic Papers, Oxford University Press, vol. 66(3), pages 798-823.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Islam, Asad & Pakrashi, Debayan & Sahoo, Soubhagya & Wang, Liang Choon & Zenou, Yves, 2021. "Gender inequality and caste: Field experimental evidence from India," Journal of Economic Behavior & Organization, Elsevier, vol. 190(C), pages 111-124.
    2. Muhammad Asali, 2021. "Gender and ethnic wage differentials inhibit growth: A shred of evidence," Working Papers 002-21, International School of Economics at TSU, Tbilisi, Republic of Georgia.
    3. Forth, John & Theodoropoulos, Nikolaos, 2022. "Earnings Discrimination in the Workplace," GLO Discussion Paper Series 1110, Global Labor Organization (GLO).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Romain Aeberhardt & Élise Coudin & Roland Rathelot, 2017. "The heterogeneity of ethnic employment gaps," Journal of Population Economics, Springer;European Society for Population Economics, vol. 30(1), pages 307-337, January.
    2. Simonetta Longhi, 2020. "Does geographical location matter for ethnic wage gaps?," Journal of Regional Science, Wiley Blackwell, vol. 60(3), pages 538-557, June.
    3. Akgüç, Mehtap & Ferrer, Ana, 2015. "Educational Attainment and Labor Market Performance: An Analysis of Immigrants in France," IZA Discussion Papers 8925, Institute of Labor Economics (IZA).
    4. David Neumark, 2018. "Experimental Research on Labor Market Discrimination," Journal of Economic Literature, American Economic Association, vol. 56(3), pages 799-866, September.
    5. Sébastien Willis, 2022. "Workplace Segregation and the Labour Market Performance of Immigrants," CESifo Working Paper Series 9895, CESifo.
    6. Ritwik Banerjee & Nabanita Datta Gupta, 2015. "Awareness Programs and Change in Taste-Based Caste Prejudice," PLOS ONE, Public Library of Science, vol. 10(4), pages 1-17, April.
    7. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    8. repec:hal:spmain:info:hdl:2441/3t1fcs7p369jmaalnboqhpgknn is not listed on IDEAS
    9. Annabelle Krause & Ulf Rinne & Simone Schüller, 2015. "Kick It Like Özil? Decomposing the Native-Migrant Education Gap," International Migration Review, Wiley Blackwell, vol. 49(3), pages 757-789, September.
    10. Chen, Yiu Por (Vincent) & Zhang, Yuan, 2018. "A decomposition method on employment and wage discrimination and its application in urban China (2002–2013)," World Development, Elsevier, vol. 110(C), pages 1-12.
    11. Pierre-Philippe Combes & Bruno Decreuse & Morgane Laouénan & Alain Trannoy, 2016. "Customer Discrimination and Employment Outcomes: Theory and Evidence from the French Labor Market," Journal of Labor Economics, University of Chicago Press, vol. 34(1), pages 107-160.
    12. Bond, Timothy N. & Lehmann, Jee-Yeon K., 2018. "Prejudice and racial matches in employment," Labour Economics, Elsevier, vol. 51(C), pages 271-293.
    13. Celeste K. Carruthers & Marianne H. Wanamaker, 2017. "Separate and Unequal in the Labor Market: Human Capital and the Jim Crow Wage Gap," Journal of Labor Economics, University of Chicago Press, vol. 35(3), pages 655-696.
    14. Roland Rathelot, 2012. "Measuring Segregation When Units are Small: A Parametric Approach," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(4), pages 546-553, June.
    15. Bedaso, Fenet, 2021. "The Labor Market Integration of Refugees and other Migrants in Germany," GLO Discussion Paper Series 884, Global Labor Organization (GLO).
    16. Merlino, Luca Paolo, 2012. "Discrimination, technology and unemployment," Labour Economics, Elsevier, vol. 19(4), pages 557-567.
    17. Eleonora Patacchini & Giuseppe Ragusa & Yves Zenou, 2015. "Unexplored dimensions of discrimination in Europe: homosexuality and physical appearance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 28(4), pages 1045-1073, October.
    18. Fleury, Nicolas, 2013. "How large second-generation migrants and natives differ in terms of human capital accumulation and why? Empirical evidence for France," MPRA Paper 50682, University Library of Munich, Germany.
    19. Yann Algan & Clément Malgouyres & Thierry Mayer & Mathias Thoenig, 2022. "The Economic Incentives of Cultural Transmission: Spatial Evidence from Naming Patterns Across France," The Economic Journal, Royal Economic Society, vol. 132(642), pages 437-470.
    20. Gabin Langevin & David Masclet & Fabien Moizeau & Emmanuel Peterle, 2017. "Ethnic gaps in educational attainment and labor-market outcomes: evidence from France," Education Economics, Taylor & Francis Journals, vol. 25(1), pages 84-111, January.
    21. John Forth & Nikolaos Theodoropoulos & Alex Bryson, 2023. "The role of the workplace in ethnic wage differentials," British Journal of Industrial Relations, London School of Economics, vol. 61(2), pages 259-290, June.

    More about this item

    Keywords

    race; ethnicity; wage; inequality; discrimination;
    All these keywords.

    JEL classification:

    • J7 - Labor and Demographic Economics - - Labor Discrimination
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izawol:journl:2020:n:365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Institute of Labor Economics (IZA) (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.